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Legoland owner planning an IPO

Published: Thursday, April 4, 2013 at 1:00 a.m.

Last Modified: Wednesday, April 3, 2013 at 9:28 p.m.

WINTER HAVEN - It's looking as if fans of Legoland Florida may soon be able to invest in its parent company.

Merlin Entertainments Group, the England-based owner of the Legoland properties, is weighing the possibility of reviving an initial public offering.

The company's chief executive, Nick Varney, told Bloomberg News that Merlin has been meeting with investors in advance of an IPO in London or New York.

Merlin, the private-equity-backed owner of Madame Tussauds and the London Eye, said London is the preferred site for the IPO, though all options are open.

"We would make no secret of our preference to list in the U.K.," chief executive officer Nick Varney told Bloomberg.

Merlin has said it plans to seek a listing by 2014, having abandoned a proposed sale to the public three years ago in favor of selling a stake to CVC Capital Partners Ltd.

Varney said the move would allow Merlin to pay down debt of $1.92 billion and would help fund more expansions in the United States and Asia. Merlin owns two Legoland parks in the United States and four elsewhere. It ranks behind the Walt Disney Co. as the world's second-largest visitor attraction operation, with revenues of more than $1.5 billion in 2012.

The company reported a 16 percent increase in visitors in 2012.

Merlin's private ownership is split among CVC Capital Partners, Blackstone Group and Kirkbi A/S, the Denmark-based company that controls the Lego Group.

"I think it's clear Disney and Universal both have experienced really strong returns recently, and I think coming out of a four- or five-year downturn -- not just in the market but in sentiment -- that this is a great opportunity for them to try to exit at a time that would be probably optimistic for their space and also for the economy as a whole," Dockery said.

Dockery said that if Merlin chooses to go public on the London Stock Exchange, American investors would probably have access to the IPO.

Merlin reported in late March that operating profit rose 17 percent to 258 million pounds in the year ended Dec. 29, driven by growth in indoor attractions.

Merlin is opening more entertainment parks across North America and Asia to drive growth as European economy wanes under the eurozone crisis. About 20 percent of revenue comes from North America and almost 15 percent from Asia-Pacific.

"We are not expecting to see much improvement in southern Europe, but we are feeling pretty confident about the rest of Europe," Varney told Bloomberg.

Merlin owns the Gardaland theme park in Italy, where the impact of the Eurozone crisis is unlikely to improve anytime soon, he said.

Information from Bloomberg News and the Ledger was used in this report.

<p><em>WINTER HAVEN</em> - It's looking as if fans of Legoland Florida may soon be able to invest in its parent company.</p><p>Merlin Entertainments Group, the England-based owner of the Legoland properties, is weighing the possibility of reviving an initial public offering.</p><p>The company's chief executive, Nick Varney, told Bloomberg News that Merlin has been meeting with investors in advance of an IPO in London or New York.</p><p>Merlin, the private-equity-backed owner of Madame Tussauds and the London Eye, said London is the preferred site for the IPO, though all options are open.</p><p>"We would make no secret of our preference to list in the U.K.," chief executive officer Nick Varney told Bloomberg.</p><p>Merlin has said it plans to seek a listing by 2014, having abandoned a proposed sale to the public three years ago in favor of selling a stake to CVC Capital Partners Ltd.</p><p>Varney said the move would allow Merlin to pay down debt of $1.92 billion and would help fund more expansions in the United States and Asia. Merlin owns two Legoland parks in the United States and four elsewhere. It ranks behind the Walt Disney Co. as the world's second-largest visitor attraction operation, with revenues of more than $1.5 billion in 2012.</p><p>The company reported a 16 percent increase in visitors in 2012.</p><p>Merlin's private ownership is split among CVC Capital Partners, Blackstone Group and Kirkbi A/S, the Denmark-based company that controls the Lego Group.</p><p>Carl Dockery, president of Lakeland-based Alpha Advisors, applauded Merlin's plans to go public.</p><p>"I think it's clear Disney and Universal both have experienced really strong returns recently, and I think coming out of a four- or five-year downturn -- not just in the market but in sentiment -- that this is a great opportunity for them to try to exit at a time that would be probably optimistic for their space and also for the economy as a whole," Dockery said.</p><p>Dockery said that if Merlin chooses to go public on the London Stock Exchange, American investors would probably have access to the IPO.</p><p>Merlin reported in late March that operating profit rose 17 percent to 258 million pounds in the year ended Dec. 29, driven by growth in indoor attractions.</p><p>Revenue rose 15 percent to 1.07 billion pounds, though like-for-like sales declined 0.5 percent as some potential visitors attended the London Olympics instead. Wet weather across Europe also deterred families from visiting its parks.</p><p>Merlin is opening more entertainment parks across North America and Asia to drive growth as European economy wanes under the eurozone crisis. About 20 percent of revenue comes from North America and almost 15 percent from Asia-Pacific.</p><p>"We are not expecting to see much improvement in southern Europe, but we are feeling pretty confident about the rest of Europe," Varney told Bloomberg.</p><p>Merlin owns the Gardaland theme park in Italy, where the impact of the Eurozone crisis is unlikely to improve anytime soon, he said.</p><p>Information from Bloomberg News and the Ledger was used in this report.</p>